Refer to the information provided in Figure 3.19 below to answer the question(s) that follow. Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Question

Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.

Figure 3.19
-Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S₁ to S₂, the equilibrium price will change from ________ and the equilibrium quantity will change from ________.

Quizplus · Accepted Answer

The correct answer is A. When supply shifts from S1 to S2, the equilibrium price will increase from $5.00 to $7.00 and the equilibrium quantity will increase from 4 to 7. This is because the increase in supply will lead to a decrease in the price of the good, which will in turn lead to an increase in the quantity demanded.

Refer to the Information Provided in Figure 3